All posts tagged economics

The Impact of Climate variability on the Private Sector

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A ground-breaking new research report has been released today by the analysts at Meteo Protect demonstrating that despite the best efforts of government leaders and international organizations to lead the response to climate change, they have not been able to galvanize the key players who can make a difference. In fact, not only are they not engaged, they do not even know they are already at risk.

A new White Paper from Meteo Protect modelling the impact of climate variability on the private sector finds that climate change is already making a significant impact in the profits of companies operating in sectors exposed to weather.  Directly challenging the direction of present empirical research, and the consensus of how to respond to climate change, it identifies how and why private industry, including companies and investors, must act immediately to manage the consequences of climate change.

Indeed, the extent to which the vast majority of companies are presently exposed to climate variability is likely to be a revelation for many analysts, investors and even companies executives themselves. Demonstrating that billions of dollars are at risk each quarter, continuing to go unreported and unmanaged, the researchers call for the provision of actionable and objective indicators to measure the exposure to climate risk and the implementation of mitigating weather hedging strategies to protect financial performance.

A must-read for finance executives, investors, asset managers and business analysts, the White Paper takes a new approach to tackling a long-standing and unresolved problem, making it understandable, relevant and manageable.

Download the White Paper

Does Geographic Diversification Work to Mitigate a Company’s Weather Risk?

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Meteo Protect has released a ground-breaking new study tackling the decades-old presumption that companies operating in different regions mitigate the losses sustained in one region as a result of unfavourable weather in another. Multinationals take note: when it comes to managing weather risks, you may be steering your ships right into the storm.

Weather affects sales volumes and profits of many firms in many sectors. The risk to which firms are exposed is not a matter of regular seasonal fluctuations but rather deviations from the seasonal cycle. For example, when the summer is cooler than normal, a brewer sells less beer, and heating demand is lower if winter is warmer than usual. Overall, it is estimated that 70% of the firms are exposed to weather risk and the financial losses caused by unseasonal weather can be very significant.

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